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Must Quebec municipalities slap still more taxes on North America’s most taxed public? Alas, yes. But here’s how to do it.

MONTREAL — When people discuss Quebec’s economy, they sometimes say alarming things. It’s not always clear if their statements are outdated, hyperbolic or solidly factual. Let’s quickly check the credibility of three common assertions:

“The Quebec government has the largest workforce in relation to population of any province.” True. Although Quebec’s École nationale d’administration publique notes that comparisons of provincial workforces can be imprecise because of different ways of classifying public employees, it calculates that the Quebec government’s 2010 workforce has 87,300 full time-equivalent employees (including civil servants and health and education workers). Ontario’s workforce is six-per-cent larger, but its population is 67-per-cent greater.

To be sure, Quebec has acquired certain responsibilities that other province don’t have, such as tax collection, immigration and manpower development. However, when subtracting people assigned to this work, Quebec is still the No. 1 provincial employer.

“Quebecers pay the highest total taxes — federal, provincial and local — than any other Canadians or any Americans.” I wrote in Tuesday’s column that this was true in 2009. As it happens, on Wednesday the source of this information, the Fraser Institute, published updated figures for 2010. Rest assured: Quebec is still No. 1.

“Quebecers have the highest per capita gross debt of any province.” True. This month’s Quebec budget predicts that it will rise from $193 billion this year to $208 billion in 2018 (although it will decline as a share of GDP). When Quebecers’ public-sector debt is combined (including provincial, municipal, university and health sector debt, and Quebecers’ share of the federal debt), the Montreal Economic Institute says they owe $251 billion.

That’s 51 times the size of Montreal’s annual budget.

Okay, now that we’ve established our rotten situation, let’s see what public officials are doing about the first item on our list, the swollen provincial payroll — which accounts for almost $6 of every $10 the government spends.

Officials are quite aware that the workforce is too big. Indeed, in 2004, shortly after taking power, the Charest government said it would hire one civil servant (as distinct from workers in the education and health sectors) for every two who retired. The earnestness didn’t last long: The number of civil servants dropped from an all-time high of 70,700 full-time equivalent positions in 2004 to 66,900 four years later, but by last year it had bobbed up to 68,200.

But the thing is this: The Marois government now plans more growth:

Without waiting for the Charbonneau Commission’s recommendations on curbing corruption, it said this month it will set up a unit to screen for probity more than 20,000 companies that sell goods or services to the public sector. A company will have to renew its probity license every three years. La Presse’s Lysiane Gagnon aptly calls this a potential “monstre bureaucratique.”

It indicated in September that it would transform the transport ministry into a transport agency, and that this body would be under the municipal affairs minister’s wing. This week, however, the Journal de Montréal reported that the government would create the agency and keep the ministry.

It confirmed this week it plans a new independent agency to probe incidents in which police kill or maim citizens. The need for such civilian review is obvious, but it would be thriftier to give the work to existing entities: two civilian units that already deal with police ethics could be expanded.

Meanwhile, outside pressure is building for further expansion. The 10 institutions in the Université du Québec network called on the government this week to establish a new body to oversee universities’ spending. This recalls the student group FEUQ’s demand last spring for a commission to ride herd on universities’ priorities.

As well, the Union des municipalités du Quebec, which represents 300 cities, last week urged Quebec to set up a new “bureau of price evaluation” to make sure municipalities aren’t overpaying for services.

The question is not whether such ideas are good. It’s whether a province with the largest payroll, tax load and debt can afford them.

The Fraser Institute’s rankings in Economic Freedom in North America 2012, are hard to find. Click here, then see table 2.1a, column 2A.

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